How lower interest rates will impact housing market

Celebrity real estate agent Ryan Serhant joins TheStreet to explain how the Fed lowering interest rates will impact the housing market.

Transcript

00:00So if the Federal Reserve does continue to lower interest rates, how might that impact

00:08your scenario for the real estate market in 2025?

00:12Helps affordability. It helps that first-time home buyer be able to get into a home without

00:17parent support. Lower rates change the game for everybody. We've never had a rate increase as fast

00:24as what we've had, right, coming out of COVID. Inflation was painful for everyone, not just

00:29in home prices, but across all asset prices, all good prices. It's a real, real issue. So

00:34rates coming down affects everyone's ability to be able to buy more, and you create more

00:39buyers that way. Right now, we have buyers who are sitting on the sidelines. They're not moving,

00:43or they're continuing to rent, or they're staying at home because they can't afford the monthly

00:47payment, right? It's not just the home price. You don't live in the home price, you live in

00:50that monthly payment. And if we're able to bring that monthly payment down, again, you bring more

00:56people out to the open houses and into showings, and it just creates a better housing market for

01:01everybody.